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Technology Stocks : NextLevel (NLV) -- Ignore unavailable to you. Want to Upgrade?

To: Tai Jin who wrote (386)	1/6/1998 1:22:00 PM
From: Ryan Weisman	Read Replies (2) \| Respond to of 475

Tai Jin, I see you followed me over from the BCMD thread!?!?! Good to see your eyes aren't completely blinded by all that gold! Anyway, as for NLV, I think there are several reasons for the gap that we have seen...one, the stock has popped about 33% in a couple of weeks, and profit-taking is normal as well as healthy. Second, I think that since this is a "long-distance" play (meaning that the profits won't be seen for a few years), I don't think this one will go up fast and furious, but incrementely. This company truly won't be HOT and EXCITING until the conversion to digital TV's is in full swing, and all minds are focusing on it. That's why I feel this is such a ground level play (not unlike BCMD in that regard, except a lot less risky); just think, by 2004, all TV's (on retail) will be digital. Is there any bigger market than televisions?!?!? And it doesn't hurt to be in bed with Sony...and the best part is that Sony is climbing into bed with us! Just think, Sony, Microsoft, TCI, and NLV...who can stop this freight train? Whoops, I meant SNE, MSFT, TCI, and GIC...the names changing back.

To: Tai Jin who wrote (386)	1/7/1998 9:03:00 PM
From: Franklin M. Humphreys	Read Replies (1) \| Respond to of 475

>>>>Is that why the stock dropped after gapping up on the open?<<<< The stock dropped in response to the "buy on rumor, sell on news/fact" discipline employed by most seasoned investors who have large enough positions so that when a majority of them act in concert they are able to move the price, sometimes significantly. This strategy daily transfers large sums of money from the novice to the professional. It is important to note that this is only part of the strategy. These people also have the discipline to follow through with a reversal of their trades as soon as they determine that the panic selling (or buying) by the novice is over and the stock is ready to return to it's trend, whatever that may be. The novice, on the other hand, has neither of these disciplines and simply excacerbates his/her error by taking the opposite side of the second trade. Just as often as not the "selling on fact" establishes a mid-term high and the novice, who bought as a "momentum" player, gets the religion of Buffet, and becomes a DLTI (dedicated long term investor), who then enjoys the further insult of watching in agony, the slow bleed over several months, etc. etc. I apologize if this is more of an answer than you expected or desired. My disclaimer is, of course, the obligatory IMHO. Frank